Buy Now, Pay Later (BNPL) concept illustration

The term 'Buy Now, Pay Later' (BNPL) refers to deferring payment on a purchase to a later date. The product is delivered to the customer without any payment being made. The customer pays after receiving the product.

In the past, 'pay later' shopping generally referred to an interest-free period after the purchase during which no payment or interest was applied. However, after this interest-free period, full payment is expected; otherwise interest is added retroactively from the original purchase date.

How many types of BNPL solutions are there?

There are two types of BNPL solutions:

  1. Merchant transaction fee credit – This can be described as a type of point-of-sale credit. It charges the consumer no interest; instead, a transaction fee is charged to the merchant. This interest-free solution is offered by companies such as Klarna, Splitit, and AfterPay.
  2. Customer interest credit – This is a point-of-sale credit in which the consumer is extended credit on the spot. The customer can take the product immediately and must later make payment with interest added. No fee is charged to the merchant in these transactions.

What are the pros and cons of 'Buy Now, Pay Later'?

Advantages for customers:

  • The opportunity to take the product home immediately and pay later
  • The potential to avoid paying interest if payments are made on time or the full amount is paid before the credit period ends.
  • An alternative solution for unexpected or emergency purchases (for example, when the customer has no available card limit, etc.).


Disadvantages for customers:

  • If interest applies to the transaction, payment is made as the original amount plus interest.
  • The credit is a one-time arrangement and cannot be used repeatedly.

Advantages for merchants:

  • Removing the hesitation of customers who are undecided about a purchase
  • Selling to more customers
  • Increasing total sales
  • Creating a new revenue stream through credit interest

Does a BNPL system exist in Turkey?

There is no system operating in the BNPL format in Turkey. I believe this can be attributed to the fact that the credit card alternative is very strong and credit card usage is widespread.